Mid-Long Term Management Plan
HORIBA Updates New Mid-Long Term Management Plan (MLMAP2028*1)
August 10, 2026
Presentation Material for Mid-Long Term Management Plan “MLMAP2028”⬇
HORIBA improves the allocation of management resources to achieve sustainable growth and to enhance corporate value, upward revising its targets for net sales, profit, and ROE
(Targets net sales of 460 billion yen, Operating income of 90 billion yen, Net income of 62 billion yen, and ROE of 14%)
HORIBA has updated a new Mid-Long Term Management Plan “MLMAP2028”. With the slogan “MAXIMIZE VALUE*2,” HORIBA aims to implement its vision “Joy and Fun for All” by executing the following three strategies.
Summary of Mid-Long Term Management Plan “MLMAP2028”
1. Background to the update of MLMAP2028
HORIBA believes that its purpose is to solve customer challenges in the field through its core analytical, measurement and control technologies, and to contribute to the sustainable growth of society, the environment, and humanity alongside business growth. By focusing on three growth fields - “Materials & Semiconductors,” “Energy & Environment,” and “Bio & Healthcare” - we have enhanced our competitive advantage and improved corporate value by connecting with customers who lead each industry and solving challenges together.
Since the announcement of MLMAP2028 in February 2024, there has been a significant shift in investment trends in new energy-related businesses, especially hydrogen, which had been a priority area for new business development. In mobility as well, the trend has shifted away from a focus on electric-vehicle development and back toward vehicle development across a broader range of areas, including hybrid vehicles and other internal combustion-engine platforms. In semiconductors, investment in data centers and other areas driven by AI demand has continued to accelerate. In response to these changes, we have decided to update MLMAP2028 at its midpoint.
2. Improving profitability through focused investment in growth areas and structural reforms
[HORIBA’s approach to the group’s business portfolio]
From the dual perspectives of technology utilization and market growth, we evaluate our portfolio across two dimensions: future growth potential and “economic value added” that takes the cost of capital into account. Based on these dimensions, we analyze opportunities and challenges making investment decisions with resolve and discipline. We will also flexibly review resource allocation and business strategies in response to future changes in the business environment. For areas expected to drive next generation growth and that require time to commercialize, we will make investment decisions from a long-term perspective based on the maturity of the technology and business. For businesses that form our earnings base, we will seek returns that exceed the cost of capital.
For assessing economic value added, we will continue to promote management that is conscious of the cost of capital by leveraging HORIBA Premium Value*6 , introduced in 2017. In areas that require value rebuilding, we will carry out structural reforms, such as strengthening profitability through optimization of fixed costs, and advance their transformation into next-generation businesses and core earnings businesses.
3. Capital allocation to improve capital efficiency and strengthen shareholder returns
Effective from 2027, the profit-linked payout ratio will be raised to 40%: dividends with a payout ratio of 40% of consolidated net income attributable to HORIBA, Ltd.’s shareholders, while special dividends and share buybacks will be executed timely and properly, taking into account investment opportunities, cash flow situation and other factors.
Through a disciplined financial strategy from a medium- to long-term perspective, we will enhance financial soundness and shareholder returns while fostering high value-added businesses.
4. Strengthening the governance structure to execute the strategy
To further strengthen the board’s oversight function and accelerate its growth strategy and profitability improvements through the structural reforms set out in MLMAP2028 Update, HORIBA is considering transition to a company with an Audit and Supervisory Committee and a board with a majority of directors (non-executive).
(Subject to approval at the Annual Shareholders’ Meeting in March 2027)
Three Strategies in MLMAP2028
1) Business strategy to solve social issues in three focus fields
We believe these three focus fields are essential for the future of the world. By organically integrating HORIBA’s core technologies, production capacities, customer networks and service capabilities that the HORIBA group has cultivated globally, we will create unique solutions that contribute to solving social issues.
- Focus Field
- Materials & Semiconductor
- Vision
- Shape the market with innovative solutions in the advanced materials and semiconductor field toward achieving sustainable society
- Details
- The social issue that HORIBA aims to solve in this field is to innovate technologies in the matrix of the value chain that we call woven value chain*7, which inter-relates semiconductor production processes, related advanced materials, and their facilities. In so doing HORIBA will provide innovate solutions in fields such as advanced materials and support its customers’ operations of all aspects in the semiconductor field.
- Focus Field
- Energy & Environment
- Vision
- A Trusted Partner supporting our Customers on their challenges to deliver a Sustainable Environment
- Details
- The social issue that HORIBA aims to solve in this field is the realization of carbon neutrality, which requires efforts primarily in the energy field. HORIBA promotes best in class solutions for customer requirement in R&D, regulation, and other processes by combining HORIBA’s technology and expertise.
- Focus Field
- Bio & Healthcare
- Vision
- Provide strong social value by transforming the healthcare journey with unique solutions
- Details
- The social issue that HORIBA aims to solve in this field is to transform thehealthcare journey including well-being and prevention, to improve the health of humans and animals. HORIBA provides unique solutions by leveraging HORIBA’s diverse core technologies and global network. HORIBA also contributes to society, such as solving clinical issues by developing solutions in the POCT*8, and optimizing biopharmaceutical development and production processes in the life science field.
Strengthen Global Management Base (R&D, Service, Production and Distribution)
In promoting business strategies, it is essential to strengthen the global management foundation in each function. HORIBA will implement the following measures to achieve optimization at a global level.
| R&D | Develop HONMAMON technologies by combining technologies and talents |
| Service | Establish a unique service model with high-quality services and analytical solutions |
| Production | Stably provide high-quality products by using a sustainable value chain |
| Distribution | Expand solutions and build distribution channels that maximize customer value |
2) Group HR Strategy to Maximize HORIBARIANs’ Potential
Vision | Create a “Stage” together where every HORIBARIAN can maximize their potential through demonstrating their abilities with “Joy and Fun” |
|---|---|
Non-financial target for 2028 | Practice the Values*9 by all HORIBARIANs Create “HONMAMON Value” |
| For HORIBA to create social value, it is essential for diverse HORIBARIANs to demonstrate their strengths, and abilities, and put HORIBA’s Value into practice. Toward achieving this, HORIBA will globally create a “Stage”, where HORIBARIANs pursue HONMAMON and fully demonstrate their potential. |
3) Sustainability Strategy for Creating Social Impact
Vision | Contribute to the realization of a sustainable society through HORIBA’s unique capabilities |
|---|---|
Non-financial target for 2028 | Achieve carbon neutrality in 2050 42% CO2 reduction by 2033 compared to 2023 (Scope 1 and 2) |
| HORIBA’s commitment is to contribute to the realization of a sustainable society by providing its highly unique products and solutions. Further, HORIBA will globally strive to promote social contribution activities and address the issues to realize a sustainable society by our entire supply chain. |
MLMAP2028 Symbol
A butterfly transforms from humble beginnings to a beautiful creature
dancing on the wind and spreading new life to each flower it touches.
Each tiny flap of its wings may result in massive impact elsewhere.
HORIBA’s cutting edge analytical and measurement solutions maximize the value to society,
to enable a sustainable future for all living things.
〈Presentation Material〉
〈Notes〉
| *1 | It stands for Mid-Long Term Management Plan and is a term that is well-known and understood within HORIBA the HORIBA Group. |
| *2 | The MLMAP2028 slogan that means to maximize every value of HORIBA. VALUE includes the meanings of “HORIBARIAN’s VALUE,” “Social VALUE,” “Customer VALUE,” and “Technological VALUE.” |
| *3 | Human Resources. HORIBA considers employees as valuable assets. |
| *4 | All HORIBA employees are regarded as our family members and are called HORIBARIANs. |
| *5 | A Japanese word derived from “Honmono” that describes authenticity and excellence. The word is used especially often in Kyoto, where HORIBA’s head office is located. For HORIBA, it represents the “unique value that comes after continuing to pursue something better with all our heart.” HONMAMON describes the people, their actions and endeavors, and everything that is born as a result of the continuous pursuit for something better. HONMAMON will become beyond “Honmono” and touches people’s hearts. |
| *6 | A unique management indicator introduced in HORIBA when it launched the previous Mid-Long Term Management Plan “MLMAP2023” aimed at maximizing capital efficiency. |
| *7 | It refers to the entire complex value chain which is likened to a complex woven textile with the semiconductor manufacturing process as the weft, and the related material markets that exist at each process as the warp. |
| *8 | Point of Care Testing |
| *9 | The Value comprise “Spirit of Challenge,” “Reliability and Trust,” and “Pursuit of Excellence,” which motivate and guide HORIBARIANs to keep creating unique solutions. |